Intel Corp. (NASDAQ:INTC)

The profitability metrics demonstrate a consistent decline in financial performance over the five-year period. Initially strong margins experienced significant erosion, culminating in negative values for several key indicators in the later years. This suggests increasing challenges in maintaining profitability and efficient asset utilization.

Gross Profit Margin

The gross profit margin decreased steadily from 55.45% in 2021 to 34.77% in 2025. While the rate of decline slowed between 2022 and 2023, the continued reduction indicates increasing costs of goods sold relative to revenue, or potentially pricing pressures.

Operating and Net Profit Margins

Operating and net profit margins exhibited a more dramatic deterioration. The operating profit margin fell from 24.62% in 2021 to -21.99% in 2024, before a slight improvement to -4.19% in 2025. The net profit margin followed a similar trajectory, declining from 25.14% to -35.32% in 2024, and recovering marginally to -0.51% in 2025. These substantial declines suggest increasing operating expenses and/or significant non-operating losses impacting overall profitability.

Return on Equity (ROE)

Return on equity mirrored the downward trend in profit margins, decreasing from 20.83% in 2021 to -18.89% in 2024, and then to -0.23% in 2025. This indicates a diminishing ability to generate profits from shareholder investments.

Return on Assets (ROA)

Return on assets also experienced a consistent decline, moving from 11.80% in 2021 to -9.55% in 2024, and then to -0.13% in 2025. This suggests decreasing efficiency in utilizing assets to generate earnings. The negative values in the later years indicate that the company’s assets are generating losses rather than profits.

Collectively, these ratios paint a picture of progressively weakening profitability and efficiency. The shift to negative values for operating, net, ROE, and ROA in 2024 is particularly concerning and warrants further investigation into the underlying causes.

The gross profit margin exhibited a clear downward trend between 2021 and 2024, followed by a modest recovery in the most recent period. This analysis details the observed changes in gross profit margin and its underlying components.

Gross Profit Margin Trend

The gross profit margin decreased from 55.45% in 2021 to 32.66% in 2024, representing a significant contraction over the four-year period. This indicates a diminishing ability to control the cost of goods sold relative to revenue. A slight increase to 34.77% was observed in 2025, suggesting a potential stabilization, though the margin remains considerably lower than the 2021 level.

Gross Profit Analysis

Gross profit declined consistently from US$43,815 million in 2021 to US$17,345 million in 2024. While a small increase to US$18,375 million occurred in 2025, it did not offset the substantial losses experienced in prior years. This reduction in gross profit directly contributed to the declining gross profit margin.

Net Revenue Analysis

Net revenue also decreased over the period, falling from US$79,024 million in 2021 to US$53,101 million in 2024, before stabilizing at US$52,853 million in 2025. The concurrent decline in both gross profit and net revenue suggests broader challenges related to sales volume or pricing pressures. The stabilization of revenue in 2025 did not translate into a proportional recovery in gross profit, indicating continued cost-related issues.

The combined effect of decreasing gross profit and decreasing net revenue resulted in the observed decline in gross profit margin. The marginal improvement in the gross profit margin in 2025 warrants further investigation to determine if this represents a sustainable trend or a temporary fluctuation.

The operating profit margin exhibits a significant and concerning downward trend over the observed five-year period. Initially strong, profitability deteriorated substantially, culminating in negative margins in the latter two years.

Operating Profit Margin Trend

In 2021, the operating profit margin stood at a robust 24.62%. This represents a substantial level of profitability from core operations. However, a marked decline occurred in 2022, with the margin falling to 3.70%. This suggests increasing cost pressures or decreasing revenue strength. The decline accelerated in 2023, with the margin shrinking to a minimal 0.17%, indicating near-breakeven operational performance.

The years 2024 and 2025 witnessed a dramatic shift to negative operating profit margins. In 2024, the margin registered at -21.99%, signifying substantial operating losses. This trend continued in 2025, with a margin of -4.19%, although showing a slight improvement from the prior year, losses persisted.

The concurrent movement of operating income and net revenue provides context. While net revenue decreased over the period, the decline in operating income was disproportionately larger, driving the observed margin compression. The substantial operating loss in 2024 appears to be the primary driver of the most significant margin decline.

Relationship to Revenue

Net revenue decreased from US$79,024 million in 2021 to US$52,853 million in 2025, representing a roughly 33% reduction. However, operating income experienced a far more drastic change, moving from a profit of US$19,456 million in 2021 to a loss of US$2,214 million in 2025. This disparity indicates that the company is struggling to maintain profitability even as revenue declines.

The progression from positive to negative operating profit margins signals a fundamental shift in the company’s operational efficiency and/or competitive positioning. Further investigation into the underlying causes of these changes is warranted.

The net profit margin demonstrates a significant and concerning decline over the observed five-year period. Initially strong, profitability deteriorated substantially, culminating in negative margins in the latter two years.

Net Profit Margin Trend

In 2021, the net profit margin stood at a robust 25.14%. This represents a substantial portion of revenue being converted into profit. However, a marked decrease was observed in 2022, with the margin falling to 12.71%. This decline continued in 2023, with the net profit margin further decreasing to 3.11%, indicating a substantial erosion of profitability.

The trend reversed dramatically in 2024, with the net profit margin plummeting to -35.32%. This signifies a considerable net loss relative to revenue. The negative trend persisted into 2025, although the margin experienced a slight improvement to -0.51%, still representing a net loss.

The substantial decrease in net profit margin correlates with a decline in net revenue, although the margin deterioration outpaced the revenue reduction. While net revenue decreased from US$79,024 million in 2021 to US$52,853 million in 2025, the net income (loss) attributable to the company experienced a far more drastic shift, moving from a profit of US$19,868 million to a loss of US$267 million over the same period.

Key Observations

The shift from positive to negative net profit margins in 2024 is particularly noteworthy. This suggests a fundamental change in the company’s ability to control costs or maintain pricing power, or a combination of both. The slight improvement in 2025, while still negative, may indicate initial efforts to address these issues, but further investigation is required to determine the sustainability of this trend.

The magnitude of the loss in 2024 is significantly larger than the revenue decline, suggesting substantial increases in costs or significant one-time expenses that impacted profitability. A detailed review of the income statement is necessary to identify the specific drivers of this loss.

Continued monitoring of the net profit margin is crucial, alongside a thorough analysis of the underlying factors contributing to its decline. Understanding the reasons behind the dramatic shift in profitability is essential for informed decision-making.

The return on equity (ROE) exhibited significant fluctuations over the five-year period. Initially strong, the metric experienced a marked decline, culminating in negative values in the latter years of the observed timeframe. This analysis details the observed trends and potential implications.

Overall Trend

A clear downward trend in ROE is evident. Beginning at 20.83% in 2021, the ratio decreased steadily to 7.90% in 2022 and further to 1.60% in 2023. The trend reversed into negative territory in 2024, reaching -18.89%, and remained negative in 2025 at -0.23%.

Net Income Impact

The substantial decline in ROE correlates strongly with the performance of net income attributable to the company. Net income decreased significantly from US$19,868 million in 2021 to US$8,014 million in 2022, then to US$1,689 million in 2023. The shift to a net loss of US$-18,756 million in 2024 and US$-267 million in 2025 directly contributed to the negative ROE values observed in those years.

Equity Fluctuations

Total stockholders’ equity generally increased from US$95,391 million in 2021 to US$105,590 million in 2023. However, equity decreased to US$99,270 million in 2024 before rising again to US$114,281 million in 2025. While equity generally trended upward, the impact of declining net income was sufficient to drive ROE downwards, and ultimately negative, particularly in 2024.

Interplay of Components

The ROE calculation, which considers net income relative to stockholders’ equity, demonstrates the significant influence of profitability on this metric. Despite periods of increasing equity, the substantial declines and eventual losses in net income overwhelmed any positive effect from equity growth, resulting in the observed deterioration of ROE. The negative ROE in 2024 and 2025 indicates that the company generated insufficient profit relative to the investment made by shareholders.

In summary, the observed ROE trend reflects a weakening ability to generate profits from shareholder investments. The negative ROE values in the most recent years suggest a need for strategic adjustments to improve profitability and enhance returns for investors.

The Return on Assets (ROA) exhibits a significant declining trend over the observed five-year period. Initially strong, the ratio demonstrates a consistent erosion of profitability relative to the company’s asset base.

Overall Trend

A clear downward trajectory is evident in the ROA. Starting at 11.80% in 2021, the ratio progressively decreases, culminating in a negative value of -0.13% in 2025. This indicates a diminishing ability to generate earnings from its assets.

2021-2022

The ROA decreased substantially from 11.80% in 2021 to 4.40% in 2022. This decline coincides with a decrease in net income attributable to Intel, despite an increase in total assets. The reduction in net income appears to be the primary driver of the ROA decrease during this period.

2022-2023

The downward trend continued from 2022 to 2023, with the ROA falling to 0.88%. While total assets continued to grow, net income experienced a more significant reduction, further compressing the ROA. This suggests increasing inefficiencies in asset utilization or a more pronounced decline in profitability.

2023-2024

A dramatic shift occurred between 2023 and 2024. The ROA transitioned from a positive, albeit low, value of 0.88% to a negative value of -9.55%. This is attributable to a substantial net loss reported in 2024, coupled with a continued increase in total assets. The negative ROA indicates that the company’s assets generated a loss during this year.

2024-2025

The ROA remained negative in 2025, at -0.13%. Although the net loss was reduced in magnitude compared to 2024, it was not sufficient to offset the continued growth in total assets and return the ROA to positive territory. This suggests ongoing challenges in restoring profitability.

In summary, the ROA demonstrates a consistent deterioration over the five-year period, culminating in a near-zero negative value in 2025. This trend is primarily driven by declining net income, even as the asset base continues to expand.